>> reporter: guys, what she says the state needs is an independent company to certify labs like hers to give them credibility, because unlike other industries, she can't go out and get a dea license for her lab, because pot is still federally illegal. back to you. >> fascinating. jane wells with the update on the retail pot business. that's it for me, carl. back over to you for "squawk alley." good morning. 8:00 a.m. at the facebook shareholder meeting in california, 11:00 a.m. here on the east coast. we're waiting for jd.com to open at the nasdaq and "squawk alley" is live. ♪ ♪ everywhere you look ♪ there's a heart a hand to hold onto ♪ ♪ everywhere you look everywhere you look ♪

it is throw it back thursday, and that was our nice little homage to '90s classic "full house. "you wanted the football action. >> i wanted to dot fishing, because uncle jesse fishes with the twins. >> right. >> joining us this morning, jon fortt, jon steinberg, thanks for living with us through that. as always, kayla tausche is live at the nasdaq where we're watching this jd news, which should open any minute, right, kayla? >> it should. right now, 13.5 million shares. the indicative price $22 a share, now looking $21.75. we're told it should be opening close to 11:00. it was previously expected at 10:25. nonetheless, very strong demand for the stock. only 12% of ipos in the second quarter have priced above their stated range. this is one of just an elite few, in a pretty choppy market, guys. >> your thoughts on this issue

in general, jon. you actually tweeted provocative thoughts about it today. >> yes. >> you err on the side of liking it. >> i do. and i know cramer doesn't. here's why, alibaba -- everybody loves alibaba right there. huge. but this is a little more like an amazon play. jd's got, let's see, 323.3 million orders, 86 warehouses in 36 cities in china, more than 24,000 train delivery staff. they actually deliver their own orders there. that's hard to build, and they've got this extended network. plus they just did this deal a few days ago with 10 cent, alibaba's archenemy, where they'll get prime placement on the web properties. they also get some web properties. so it's like ten cent arming the smaller competitor to alibaba that has logistics infrastructure, and this one might get ignored in all of the alibaba hype. so it could be a value. >> the negative thing investors feel about the companies that actually have to handle products

is there's a thing they have to deal with as opposed to being a marketplace or ad platform like alibaba is. they tend to get a lower multiple. if you look at amazon, amazon trades at about, you know, 1.8 times revenue. and at this price, if j.d. opens around $22, it would trade 2.5, 2.6 times revenue. not overly expensive for a company that grows revenue 68%. >> amazon came out in a highly penetrated market in the u.s., j.d. coming out in china -- >> -- logistics creating the barrier. it gives you the barrier alibaba may not have. >> even though it's one of the worst performers on the s&p. is a company modelled like that coming to market as a bad time, jon? >> well, that's a good question. it could be, but i think you have to look at china as a very different environment than the u.s. of course, there are risks investing in a china-based ipo because you're not really

getting equity in the company. you're sort of trusting that china will value foreign investors, and we don't know what's going to happen over the next decade. but if you assume, which you have to if you're going to play in this at all, all of that will turn out okay. you have to look at this in a completely different way. >> we're getting a first trade, kayla. do you see this up 15%? >> i do. 21.93 and climbing. it did open right at that 21.75 level. we had to wait a little while for that. but, of course, it is a good sign for investor demand. i know you guys were talking about the market conditions for a company like this. but there is so much demand for such a growing sector, especially in china. iresearch says it has a 46% market share in china ecommerce, so a big slice of the market. the stock up nearly 16.5% after the open, after pricing above its $16 to $18 range overnight, oversubscribed, a lot of fanfare today at the nasdaq. bob grifeld rang the bell with a

large contingent from j.d. you can see the nasdaq trying to roll out the red carpet as it's in the final stages of competing for the alibaba ipo. but now, j.d. up 15.5%. >> that's the added wrinkle, jon steinberg, is the fanfare it's gotten two years almost to the day when facebook went public. >> but also, to your point about amazon being an underperformer for the year, if you look at j.d. relative to -- or j.d. relative to -- >> amazon? >> -- amazon, relative in the cycle, amazon went to $7llio the past year. j.d. went to $11 billion, and that's 68% growth in the prior year. >> yeah, and as you were alluding to, carl, this is as big a day for grifeld as it is for j.d., as kayla was alluding to. you wanted it to go well, have a nice pop. you wanted everything to go smoothly to excise that facebook -- >> ghost? >> -- yeah. and for alibaba to feel like,

okay, well, they did it on the nasdaq, it went okay. maybe we should do it on the nasdaq, too. you can bet if it hadn't gone well, there's no -- >> -- much more volume. >> right. we'll keep our eye on that trade over the next hour or two. in the meantime, in about three hours from now, facebook will hold its second ever shareholder meeting in redwood city, california. morgan brennan is live outside that meeting. morgan, good morning. >> reporter: good morning, guys. yeah, in just a few hours, this hotel behind me is going to fill up with facebook executives, including ceo mark zuckerberg and the company's biggest shareholders. this will be, as you mentioned, facebook's second ever shareholder meeting as a public company. what makes this one different, it's the first time shareholders are actually getting to submit proposals. so we've got seven up for vote. two from the company, including

re-election of eight directors, and five from outside shareholders, like northstar asset management's call for more detailed disclosures about political contributions. now, facebook's recommending shareholders vote for its own resolutions and against the others, and that's the likely outcome we'll get this afternoon, because keep in mind facebook has that dual-class share structure that gives zuckerberg over 60% of the voting rights. so it's still early here. the hotel is booked, and the lobby is starting to buzz. back to you guys. >> all right, thank you. let's stay with facebook, the social network unveiling the new audio-recognition feature that lets you automatically fashion music, tv shows, movies in the status updates, and uses your phone's microphone to identify the show, and tags it in your post, like shazam for facebook, and in an area they're interested here. >> and they immediately go into saying, don't worry about the privacy, worry about a microphone. from the press release, a new optional way when writing a status update, if you choose to

turn it on. here's how it works. if you turn the feature on, they go over and over again, because this is weird, when you do a status update, once you have turned it on, you see the blue things moving, meaning your phone is listening to your tv, listening to your music, and every time you post a status update, it could be listening. it's listening for television or movies to be able to identify and signal what the title is. they want to be very clear about the privacy implications here. >> this is hugely valuable for facebook. i'll say it's less privacy intrusive than having location turned on when you tweet or post any kind of a status update, you know, in my opinion, where you are versus what you're listening to. the value here, if it gets used, facebook can verify what people are listening to at the time, actually watching at the time, that's really valuable to people who make and market content. it's also valuable, i think, to people who are selling all sorts of goods. if you're shopping online at the same time that you're actually watching a show or actually watching the commercials that air in a show, now, you know, facebook can say, okay, target, you aired that commercial during

that show. well, this person was actually watching, because we heard the audio. that is a very, very key tie-in. >> why not just buy shazam? >> i feel like they feel like they can build the technology. ultimately, facebook has such a large base. they do make the build versus buy decision. the advertising implications are enormous. twitter has a project called twitter amplify where they tie-in tv viewing and allow people to see clips and target advertising and sequence with what's on television. this is a way to get television dollars. the television advertising budgets are so much bigger than the digital budgets that ultimately is what this is about. >> all right. facebook meantime upgraded by evercore. they talk about their ability to monetize mobile at multiples the industry average exerts, and then you have twitter down seven straight days and can't get away from 30. >> right. look how far we've come with facebook, could they cross the chasm into mobile advertising? could it work? now talking about running mobile advertising on different kinds of apps, all kinds of different

mobile websites at performance that's nine times the traditional -- >> are we seeing facebook pull away? >> yes. >> no question about that? >> yeah, definitely. they're at a whole different level of scale. you see twitter and pinterest in data, mostly from adobe which has good social data, gaining some share, but facebook is so huge that all it takes is for them to come out with an innovative idea like this that works. we'll see if people actually adopt it, and they pull away. >> i don't think it's even pull away. i don't think they were even in -- >> no, i'm not suggesting -- >> but further away. >> absolutely further away. >> it does bring us to squawk on the tweet. boeing looking for an apple makeover at the annual conference with them, one big high-risk moon shot is the wrong way to pursue business and flat out, he said, we want to be more like apple. it brings us to this morning's squawk on the tweet. which company needs an apple

makeover and what would the transformation look like? tweet us @squawkalley and we'll get your responses later in the show. a couple of times ceos said they wanted to be like these guys, and pepsi, too, with the dispensers. >> and some would argue apple needs to be more like apple. we'll see what they have at their sleeves at wwdc. >> and we talked about the most valuable brands and how google had surpassed apple. if you're saying you want to be more like apple, you're missing the boat, you want to be more like google. >> yeah, what does that mean? show you the plane from 2030 that we may or may not use? >> always diverged on google. i mean, always. you think these things are all kind s of marketing -- >> i know. that's why we diverge on google, because i know that you believe, and so i have to kind of take -- >> yeah, yeah, i hear you. >> i love you, google. when we come back, jd.kocco you saw it open up about 15%

above expectations. the question is, should you be buying? the company's cfo will make his place. he designed so many filters at instagram. cole rise will talk about the new app that hit number one in the free photo section on the app store. and the origins of throwback thursday. why do we do this? we'll dive deep into the social media phenomenon. first, me microsoft lifting curtain on a new store in new jersey. josh lipton is there. >> reporter: hey, carl. this is not your father's microsoft. the company today launching a new retail store in new jersey. the music's blaring. a lot of young people in the crowds. we're going to tell you why when "squawk alley" returns. predicting the future is a pretty difficult thing to do. but, manufacturing in the united states means advanced technology.

we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done. [ male announcer ] since we began, mercedes-benz has pioneered many breakthroughs. ♪ breakthroughs in design... breakthroughs in safety... in engineering... and technology. and now our latest creation breaks one more barrier. presenting the cla. starting at $29,900. ♪

welcome back to "squawk alley." i'm kayla tausche at the nasdaq market site where jd.com, china's second-largest ecommerce company, has just gone public. the stock is up 18%. we are joined by the company's cfo, sydney huang, in a first

cnbc interview. congratulations. >> thank you very much. >> it's a challenging economy. it's the biggest ipo in a time when stocks have corrected. what challenges did you face? >> i think investors recognize the strength of jd.com's business model. it has been well received. >> when you think about some of the tenets of this deal, a private placement with ten cent, which i want to talk more about, as well as the fact that lot of the proceeds will develop the infrastructure, were those big selling points to investors? >> yes. we do see a lot of investors really have a conviction in our long-term growth strategy, which, you know, despite of the investment we will be making, we have been making a lot of investments. but the long-term prospect of our story is just very, very exciting. >> what role will ten cent play in this growth? obviously, a big social gaming

company. archnemesis of alibaba, which is one of your competitors. how do you plan to leverage that relationship for jd.com going forward? >> this is really between the largest ecommerce company and the largest interer net company in china, the largest, you know, boasts internet and mobile user base. >> when you think about the growth of the ecommerce sector, leveraging mobile, as well, that sort of goes up against some weakness that we are seeing in china. housing showing signs of distress. manufacturing is mixed. gdp slowing. what sort of macroeconomic headwinds will jd.com have to overcome? >> china has actually gradually moved into a consumer economy. so because of the, you know, historically we've been in more of a manufacturing driven economy, but now it's about time that consumers will spend more money, and also because of the

online/offline dynamic is huge opportunities for online ecommerce. >> i know jon fortt, my colleague back at the new york stock exchange, has a question for you, as well. jon? >> hi, sidney. congratulations. i want to ask about the comparison to amazon. i think investors might look to amazon as sort of a model of what to expect from you. at what point do you think you might pause in your spending on infrastructure, on logistics and let some profits flow through? is that something that might happen in the near future? or is that still far off? >> well, i think we're seeing an obsession with customer experience. but jd.com does go one step further to provide our own in-house last-mile delivery for the goods we ship to our consumers. so right now, the market in china has such tremendous growth opportunities. that's why we deliberately decide to continue to reinvest,

but longer term we believe we have a great prospect for very, very meaningful profitability. >> we note, sidney, you lost $8 million last year. that loss is narrowing, as you turn in a pretty substantial amount of revenue growth. why did you decide to bring that story to the u.s. and specifically to the nasdaq? >> well, i think, you know, if you look at the first nine months of last year, we were gaap profitable. so, you know, again, we deliberately made the choice to reinvest and making sure we capture the market share and the tremendous growth opportunities. >> but listing here in the u.s. and listing at the nasdaq specifically, do you think other chinese companies should make the same decision? >> well, definitely, it will raise the visibility of jd.com globally and certainly will also domestically in china. >> well, we wish you the best of luck, sidney. i know you guys have about 30 people from jd here in new york city throughout the weekend. so have fun celebrating, and

thanks for joining us. >> thank you very much. sidney huang, the cfo of jd.com. back to you. >> all right, kayla, thank you so much. when we come back, what does it look like to have a tennis ball coming at your face at 90 miles an hour? seeing through the eyes of roger federer thanks to google glass. plus, a little throwback action for you, the cute kid on the right side of the screen, jon steinberg back in the '80s. where does tbt come from? the s&p tech sector at a 13 1/2-year high today. we're back in a minute. with all the opinions about stocks out there, how do you know which ones to follow? the equity summary score consolidates the ratings

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listen, i just had to buy the stupid iphone 5 again for

$700. it broke my screen, which is upsetting. but, no, as long as i got my macbook air and my iphone, i'm happy. when's the 6 coming out? do you know this? >> probably september, end of september, when they tend to do it. >> listen, apple kills me. i'm already absolutely positive they have an iphone 10, and they're -- we're just -- >> they're going to get us to buy it somehow? >> of course. and i'm going to buy it, too. that's the worst part. >> supermodel chrissy teigen. 400,000-plus twitter followers. >> she is a good cook, i hear, good choice in husbands, john legend. >> that's the sentiment. there's a lot of truth in that interview. where is that phone? why is samsung able to have success? there's a lot of good information in that sentiment. >> and her husband, john legend, a white-glove samsung guy, she told me. so they're a split household.

tim cook, apple, you need to go after that, hold onto chrissy, and she wants her new iphone. >> all that said, we expect the developers conference at apple to not be a hardware story, right? >> yeah. >> not a beats story. it's operating systems. >> they really don't like to overshadow the software and developer news with big hardware news. sometimes they'll roll out some macbook news right before or even at the conference. don't expect anything big, i think. >> boy genius was saying macbook air with retina display, possibly. >> that's a couple of weeks away. in case you missed it, you can see the world through roger federer tinted glasses. he donned google glass at their campus and played a few sets with the technology, highly stylized video. very cool to watch, very tightly produced. as we await go pro's ipo, glass getting a lot of attention, coming from the points of view, see the world through my eyes type of videos. ♪

in the meantime, we'll count you down to the close in the u.k. and across continental europe in a moment. stocks mostly higher on a day when euro zone leading higher, above forecasts. the numbers driven by growth in germany, but french pmi slipped into contraction. sba one of the big winners, brewer posting a better-than-expected full-year profit, helped in developing markets like latin america. they're on track for the best quarter economically in about three years. so a lot of things are beginning to happen in europe. when we come back, he has over 900,000 followers on instagram, and maybe he should. after all, they named a filter after him. you know it as rise. you can see what it looks like on your screen. instagram designer cole rise, number one on the free photography section in the apple store. and jim mcinerny saying apple

needs a makeover. what would the transformation look like? we'll get to some of your answers in a moment. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade.

all on thinkorswim microsoft lifting the curtain on the brand-new retail store in paramus, new jersey.

let's send to to josh lipton live outside the store. good morning, josh. >> reporter: good morning, carl. this probably isn't a scene you might associate with microsoft, but the software giant, it's all new. you have music blaring, the crowd started forming last ni t night. today, microsoft is launching its newest resale store in new jersey. microsoft putting a big push behind its stores. there are now more than 90, and they're launching another 13 by the end of june. inside, you'll find phones, tablets, xbox consoles, as well as other products, dell tablets, go pros, and also a service component. so what's behind the push? ceo satya nadella is serious about a mobile-first strategy, you need a store where consumers can come in and experience the products, and an obvious rebranding effort. when nadella addresses the crowds, he's in a t-shirt and jeans, and kids were lining up

for free tickets starting at 10:00 p.m. last night, carl. but a lot of them i were talking to, they were actually here from microsoft, as well. >> i'm here for the opening of the microsoft store and to get tickets to see macklemore. microsoft and i are pretty tight. >> reporter: now, there's an obvious comparison to rivals in cupertino, but it's not apples to apples. apple has more stores, generates about $20 billion in sales per year. microsoft doesn't break out those numbers. some interesting numbers we can tell you about. the customer growth partners, a retail research firm, says apple generates about 4,500 in sales per square foot. microsoft, under 500. the challenge here for microsoft is that a lot of consumers still associate it with software, not necessarily devices. so microsoft has challenges ahead. but maybe opening up this retail store is a step in changing that perception. guys, back to you.

>> josh, it's jon steinberg. what's the difference now from when in 1999 microsoft, i remember, launched a retail store in san francisco, is that they have hardware now? has the world changed? there's more ecommerce now, so why would this work now? >> reporter: i think certainly you've seen new products, right? so satya nadella has put the strategy forward. microsoft saying they want to be a player in consumer devices, they want to take on apple and google. he has products to show, phones, tablets. talking to some of the kids on this line, they weren't just talking about macklemore. some were coming in to buy phones, buy tablets. there's products he wants to show. and you go that that store, jon, it's a very sleek, cool, minimal look. that's part of it, too. they want their customers to have that experience in these stores, guys. >> josh, we appreciate that. between what's going on there retail-wise, jon, and what angela is about to do at apple, that will get interesting from a

retail stand of point. >> and at the end of the year, too, with best buy. they said a couple of quarters would be rough. we know google will unveil android wear. we know motorola will come out with the 360, its watch. lg has a watch. these are all products you have to try on, touch, and feel. that, i think, is one of the things different from 1999. you didn't care what your xbox felt like, but these things, you have to pick up and feel, does this look right on me? >> what i thought you would say about best buy, they'll launch stores within stores. >> yeah. >> they'll have expanded samsung store, as well. announcing earnings today. the stock is up a bit. remember, down from 40 to 25 from a quarter ago. >> very true. if you are a selfie fiend, you probably use instagram, or maybe use a filter like this, or maybe like this. ooh. well, our next guest is familiar with the power of filters. cole rise is the founder and ceo of lightly, a photo filtering

app that shot to number one in the photo section of the app store. he was an early instagram design consultant and created not only the instagram logo but has rise named after him. great to have you at post 9. >> thanks, carl. >> having done so much already, and you'd think we're all filtered out, but clearly we're not. >> well, filters are -- if you think about it, the mobile phone is replacing the family camera, right? my mom shoots with her ipad at christmas. my best friend had twins and he's in the delivery room with his camera, with his phone, not a $3,000 camera. what we're seeing is these memories that we're creating are in our pockets all of the time. so when you look back in 50 years, you want colors that you can -- you don't want to look over-edited. >> so when you look at the future of your company, are you building the next adobe? does it go beyond filters into more complicated, more sophisticated types of graphic

creation? are you really focused in sort of mobile fashion on simplicity? >> well, we try to make colors more accessible to someone like my little cousin, who uses instagram all the time. i love instagram. all of the tools we use as professional photographers are a bit overcomplicated. i only use 10% of what's available there. what i'm trying to do is bring those tools to the emobile device and into an easy user interface. >> is the coding difficult, the actual computer work? >> it's the same kind of colors you see in professional films or in commercials. >> it's taking a professional product and -- >> bringing it down, making it more accessible for someone like my mom to use. >> in general, where are filters headed? for instance, what do people want to see more of? >> filters, really good filters, are ones you don't notice, a photo that doesn't look edited in a sense. so subtlety is longevity. in 50 years when you look back, you want to see colors that you really love. and in a way where it doesn't look like it's been edited down.

>> you have a lot of sharing, since instagram, the app share, looking at facebook, twitter, or an up-and-comer like manager, where do you see the sharing with the most excitement in the big companies with photos? >> i'm a huge instagram user. i built it as a tool in addition to that. people who love instagram, love to create photos with their phones, can easily share. >> what about video filters? there are few companies out there doing those. is that a direction you specifically decided not to go in, or is that coming? >> well, it's week two. we launched two weeks ago. video is very interesting. i would love to build an app in the future that is potentially media agnostic, it doesn't care if it's a photo or video. >> when you talk to colleagues in silicon valley, what's the read on go pro? how do you feel about go pro as a platform creation? >> i love it. i have three all the time. >> three, because you want a different angle?

>> you can attach them in different angles. i fly planes so i like to stick them on the bottom of the plane or swim with sea turtles underwater. you can also lose them quite easily. it's good to have a couple of backups. >> do you think there are sharing hooks to be built in? >> absolutely, yeah, having a direct integration makes sense for a company like that. >> you must be dying for phone cameras to get better, and they are. >> they are. >> i notice you are using an iphone. >> i am a huge iphone fan. i've used android phones, as welch the technology is getting up to par with aslaris. you don't need to edit them too much. >> so what areas do you think the companies need to focus on as they make advances in cameras? apple just poached one of nokia's important engineers in figuring out how to do better cameras. there's, you know, megapixels versus lens quality. what do you want to see come out of this to make your product

better? >> well, mega pixels to me don't matter as much as say the quality of the actual image. i love apple's approach with staying within the mega pixel range, because, a, the file size is low. we're only running 64 gigs on the phone. you don't want to run out of space. and, two, having the technology perfected for low light. eight is really all we need. >> is it going to be a partner to instagram? >> the entire community of photographers use apps, i'm one of them. i bounce between apps, great photos for instagram. yeah, i don't see it as a competitor at all. instagram is really a community. >> it is. and it has surprised everyone with the growth it's seen in a few years. your favorite filter by the way on instagram is? >> it's one of the first. it's early bird. >> really? >> created by the co-founder. >> rise is my favorite. it makes my bad pictures brighter. i'm forever indebted, as is my family, to you.

>> thanks so much. >> cole, thank you for coming in. coal rise, the ceo of lightly. let's send it over to dominic chu and get a "market flash" here. hey, dom. >> hey, carl, you, jon, jon talking about best buy. the retailer posting first quarter profits that beat wall street expectations, this on cost-cutting measures. its sales continue to be weak, missing consensus analysts' views. the company that did not -- did not give specific guidance but expects sales to decline from the next two quarters on because of what it says is a lack of compelling new products. maybe if we had better products we have better stock. off session highs, of about 3%. >> thank you, dom. police forces across the world getting more sophisticated. how drones and google glass are changing the way law enforcement operates. we'll talk about that. first, rick santelli, what are you watching on this thursday? >> we need to watch corporate balance sheets. it has been at least a dozen times this week where i've heard comments that we're in pretty

good shape. look at corporate america. look at how clean their balance sheets are. should that really instill confidence in me, that what lies ahead is going to be great economic horsepower? we're going to debate that after the break. predicting the future is a pretty difficult thing to do. but, manufacturing in the united states means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done. don't just visit rome. visit tripadvisor rome. with millions of reviews, tripadvisor makes any destination better.

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all right, coming up at the top of the hour, wall street's big surprise. we're looking at the calls that are working so far this year and the ones that aren't. plus, we're hours away from facebook's second-ever shareholder meeting. we'll ask one of the most bullish analysts on the street what he's watching out for. and we're globetrotting with gemma godfrey. she'll reveal her top two global plays now all straight ahead on "the half," carl. >> thanks. the "robocop" we make is already in the works, but some police departments are turning sci-fi into reality. glass has been used to catch traffic violators, recover stolen cars. and closer to home, the nypd is considering using drones to fight crime in the city. the police chigser said it could help spy on hot spots. it's not the first time the city has said this. former commissioner ray kelly floated that idea, as well. and we're seeing bigger-scale, commercial uses as to how this

could eventually be deployed. >> google glass with police, i have this image of the google police detectors going, okay, glass, okay, glass, while people are rampantly pick pocketing on the streets. that's the real scenario. >> i think you need a different version of glass -- >> definitely, not the one i have. >> a few automatic features. it's interesting. you're seeing these industrial, commercial, very narrow, specific uses for this technology. we'll see if it finds mainstream use. the drones in the skies, police using, it scares me. >> i'm more bullish on drones for city use than for google glass. i think with a lot they hover pretty well and there's no reason it couldn't work. >> and we're not talking about ipads, the tablets, have a long way to go in commercial use as apple has made that point several times. let's get to the cme group. interesting market action. the tech sector and now transports have hit a new intraday high. rick santelli has the "santelli exchange." >> hey, as long as that nasdaq doesn't close below 3996 we're in good shape.

listen, how many times did we hear analysts and smart analysts, smart economists, smart strategists, it sounds like a smart comment, things are pretty good. corporate balance sheets are really clean. i agree. but does that really tell us anything tangible about future economic growth, future levels of growth, future levels of disinflation or inflation? it really doesn't. corporate balance sheets, first and foremost, are loaded with a record amount of debt. the good news is, it's at historically low levels. so one thing we want to think about right off the bat, when you have a lot of debt at what is considered historically low rates, you can feel pretty proud of yourself, except it looked through the prism that rates will be higher at some point. but the whole concept changes a bit if rates actually don't go higher. or if rates stay the same or if,

god forbid, rates actually go lower. and it really isn't giving you any degree of investing strategic confidence to know that a corporation has a good balance sheet. all that tells you is if things go poorly that they'll be able to weather it most likely a whole lot better than the other side of the coin, which is the individual balance sheets, which really are going to give you a much better clue about future economic growth than the corporations, because without customers, i don't care how pristine their balance sheet is, then it becomes a burn factor. the other issue is everybody wants to handicap the word nobody ever wants to say, the "r" word, recession. we've had discussions about the flattening yield curve, what it tells us? historically, it might -- inversion, history with europe -- used to tell us something about a recession, but who knows? there's no gps left anymore to rates anywhere in the globe.

i will tell you this. i'm not sure if we're going to have a recession or not, but there's one thing that really does bug me. reuters just came up with some statistics, and they don't have it all locked in yet, but quickly on the screen, in 392 states in which reuter has data, revenues have declined 12.4% from the previous april, april-to-april, that's certainly something to pay attention to. back to you. >> all right, thanks so much, rick santelli. on this throwback thursday, look at this. jon fortt, when he was just a little bit younger. that's great -- but where does the term throwback thursday actually come from? we have answers on that, and more embarrassing pictures in a minute. dow's up 20. ♪ [ male announcer ] tora bora fallujah argonne khe sanh midway dak to

normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. ♪

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part of the original cnbc animation. haven't seen that in a while. if it's thursday, it's throwback thursday. it's the day when friends post nostalgic images online, like these, as some of our squall alley team. that's me. today, about 250 million instagram photos have been tagged by using tbt or throwback thursday. what are the origins of the social media phenomenon? liz gaines is a senior editor for technology trends and

innovation at re/code, wrote about this earlier in the month. good to see you back. good morning. >> thanks. >> you have to go back to 2006, right? >> yeah, so throwback thursday didn't start on instagram, because it wasn't around in 2006. it found its natural home there eventually. the first record that's known is from 2006, a guy named matt haffield founded a site called nice kicks dot-com, and wanted to establish a blog, so he thought of this. he told me on the phone from texas, from austin, texas, where he lives that he just likes illiteratio in, and as far as he knows, he didn't borrow it from anyone. >> i like to say nostalgia is one of most powerful forces, it's so much a a part of so many campaigns. did you find a lot of companies that had used nostalgia and throwback as part of marketing

campaigns? >> yeah, general electric started doing it, public figures, celebrities, michelle obama has done it. kim kardashian, beyonce are big fans. i think it's nostalgia. there's one other aspect to it that i like, which it's kind of self-deprecating. it's a cute picture, sure. but often you're awkward, braces, it's not the way you look today, taken at an age when we were perfectly composing our selfies, so i feel like it's relatable to anyone. >> that's funny, i was in a spree campaign. >> it looked like i'm half drunk. >> we at buzzfeed, we have a whole entire vertical called rewind, which is all nostalgia content. liz, from a traffic standpoint, any sites you looked at that had particularly large, nostalgia oriented throwback traffic? >> yeah, an app called time hawk that all it does is it looks through your social media history and on that day, it gives you a little alert on iphone or android saying hey,

look what you did on this day, x many years ago. so i check it every morning. i already checked mine today. thursday is the most -- the biggest traffic day they get. but people -- people like to say time hop is throwback thursday every day. it's a lot of fun for someone like me who's been using facebook and twitter and instagram, a rich history. some days i have up to six years of history back there. >> liz, when did instagram really start leveraging the phenomenon? and do you think this is something that can go the distance, or will we look back in five years and think that was ridiculous? >> oh, i don't know. instagram isn't leveraging it per se. instagram users are doing it themselves and they figured it out. it made the leap into instagram in 2011. it kind of was interesting, it transitioned, the first throwback thursday tag was old cars. so this kind of posting a picture of yourself evolved naturally, as far as i can tell. i think it has staying power. i talked to some folks from

instagram about what other hashtags are used in this genre, and others were mancrushmonday and womancrushwednesday. and i -- i think that -- you know, crushes have universal appeal, but i feel like throwback thursday is where it's at. >> yeah, that's probably the only one. you ever posted any choice pics for throwback thursday, liz? >> i have. i posted one for you last week. i think it's a fun one. i'm not a big hashtagger. i feel like you go into self-promoter land when you're in hashtag land. i like throwback thursday, i think it's pure of heart. >> i've seen data if you use multiple hashtags, you're less likely to get retweeted. >> in terms of getting the sharing activity, there's a whole idea that on social, the headline doesn't really matter anymore, because the more you can make it about yourself, we call them identity posts at buzzfeed, this is what i think of this article, you get more

social spread. taking the throwback thursday and exposing it to identity content is a way to drive traffic on the social networks. >> it will be interesting to see if it goes kind of outside instagram and twitter, which as popular as they are among the set that use them -- >> true. >> -- they're not part of the broader culture quite yet. twitter is working on it, obviously. >> yeah. liz, great stuff. a good post back on the first of the month, i believe. thank you for coming on. >> thank you. >> liz gaines, and also nbc news group is a minority in re/code. when we come back, boeing's jim mcerney saying we want to be more like apple. so what would the transformation look like? tweet us and we'll get your answers when we come back.

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♪ welcome back to "squawk alley." just a quick check on jd.com.

the stock sitting just below $21 a share, it opened at $21.75. still up roughly 10% from the $19-per-share price where it priced last evening. of course, big fanfare at the nasdaq at jd.com, china's second largest ecommerce company, is trading. >> not so easy. do you know where these are from? >> i would say halloween mid-'90s, by the looks of the bag, i was expecting some pretty big loot. proof that jellybean diet works. you can probably believe this, but i made this costume. >> good stuff, kayla. thank you for bringing us jd. a great interview. really quickly, answers to the tweet question, which company needs an apple makeover the way mcernie mentioned at boeing? scott writes, apple needs an apple makeover. as jon said, where the innovation of the jobs era to develop new markets and growth? chris writes i don't think a 737

iphone will fit in my pocket. salesforce.com, the poster child for momentum names that took a wrong turn, is up almost 10% this morning from the intraday low in late april. we'll keep our eye on that. one of cramer's keys to the market. thank you for a great hour. great seeing you, jon and jon. let's get back to headquarters and wapner and the "halftime." >> all right. thank you so much. welcome to the "halftime" show. here's today's trade -- sledge fund. surprising new details on how hammered the so-called smart money is getting this year. what's gone wrong, and why? aboutface. hours ahead of its second era shareholders meeting, facebook gets a big upgrade. is that the right call for your money? going to pot. we're live from the weed convention in colorado where jane wells smokes out surprising entrepreneurs. let's meet joe, jon, josh, steph and steve. and we're in the tightest range for stos